The 5 Best Hostels in Panama City, Panama - She is Lost Around the World

Panama City is NOT the place that has endless hostels for you to choose from.

I stayed at Casa Areka when I visited Panama City at the beginning of my Central America trip, but if I went back today, there’s actually another hostel I’d choose first.

That would be Viajero Casco Viejo. I’ve stayed with Viajero before in Medellín, Colombia, and had such a good experience with the chain that it would easily be my first choice.

So, whether you’re looking for somewhere social, somewhere cheap or simply a good place to stay, these are my picks for the best hostels in Panama City.

Best Hostels in Panama City: My Quick Picks

	Hostel
Best overall	Viajero Casco Viejo Hostel
Where I stayed	Casa Areka
Best cheap option	Hostal Villa Grande
Popular choice	Bodhi Panama City

Viajero Casco Viejo Hostel — Best Overall

If I went back to Panama City tomorrow, Viajero Casco Viejo is where I’d stay.

I’ve stayed with Viajero before in Medellín, Colombia, and honestly, they know how to do hostels. The hostel was super social, there were always activities happening, and meeting people required basically zero effort.

That’s a huge thing for me when I’m traveling solo. There is nothing worse than booking a hostel expecting to meet people and discovering that nobody actually speaks to each other.

After my experience with Viajero in Medellín, I’d happily choose the chain again in Panama City.

Best for: Solo travelers and social travelers

Book Here: Viajero Casco Viejo Hostel

Casa Areka — Where I Stayed

Casa Areka is where I stayed during my trip to Panama City.

We arrived after flying from Europe and only needed somewhere to stay before exploring the city the following day.

One of the things I remember most about arriving was actually the area around the hostel. Panama City was much more modern than I expected, and suddenly we were surrounded by these enormous buildings that looked nothing like what I’d pictured before arriving.

As for Casa Areka itself, it worked perfectly fine for what we needed. I had no major problems with my stay, and I’d have no problem recommending it as one of the hostel options in Panama City.

Best for: Backpackers looking for a good all-around option

Book Here: Casa Areka

Hostal Villa Grande — Best Cheap Option

If keeping your accommodation costs down is the priority, Hostal Villa Grande is my budget pick.

And saving money on accommodation can make a difference here. Panama City was noticeably more expensive than several of the destinations we visited later on our Central America trip, so this is definitely somewhere I’d be looking for ways to keep the daily budget down.

If you’re backpacking and mainly want a good cheap hostel rather than spending extra on accommodation, Villa Grande makes the most sense from this list.

Best for: Budget backpackers

Book Here: Hostal Villa Grande

Bodhi Panama City — Popular Choice

Bodhi Panama City is one of the popular choices I’d have on the list if you’re looking for something different from Viajero, Casa Areka or the cheapest option.

It gives you another choice without pushing you toward either the most social hostel or the budget pick, so it can work well if neither of those is your main priority.

Best for: Travelers looking for a popular hostel option

Book Here: Bodhi Panama City

El Machico Hostel

El Machico Hostel rounds out my five picks for Panama City.

I’d put this one on the list for travelers who simply want another solid hostel option rather than choosing one of the bigger names above.

Sometimes the decision comes down to what suits your dates, budget and the kind of stay you want, and El Machico gives you another option to consider.

Book Here: El Machico Hostel

What to Look for When Booking a Hostel in Panama City

Location

Panama City is much bigger than I expected, so I wouldn’t choose a hostel based on price alone. Look at where it actually is and whether the location makes sense for what you want to do.

We stayed in a very modern part of the city, while other hostels are closer to the older and more touristy areas, so where you stay can give you a completely different experience of Panama City.

Social atmosphere

If you’re traveling solo, this would be one of the biggest things I’d look at.

I’ve stayed in hostels where I’ve made friends within five minutes and others where nobody seemed to speak to each other. If meeting people matters to you, don’t assume a hostel will automatically be social just because it has dorm rooms.

That’s one of the reasons Viajero would be my first choice.

Air conditioning

Panama is hot and humid, so this is something I’d check before booking. Saving a few dollars isn’t going to feel particularly clever when you’re lying awake sweating in a dorm room.

Kitchen

If you’re backpacking on a budget, having a kitchen can be useful in Panama City because I found eating out more expensive than I expected.

Even if you don’t plan on cooking every meal, being able to make something simple can help keep your costs down.

Female-only dorms

If you feel more comfortable staying in a female-only dorm, check whether the hostel offers one before booking.

I stay in both mixed and female dorms depending on the hostel and the trip, but this can obviously be an important factor for some solo female travelers.

Are Hostels in Panama City Good for Solo Travelers?

Yes, but the hostel you choose matters.

For me, one of the biggest reasons to stay in hostels when I’m traveling solo is meeting other people. A genuinely social hostel can completely change a trip because suddenly you have people to explore with, go for food with or even continue traveling with.

That’s why I’d prioritize atmosphere rather than simply choosing whichever hostel looks nicest in photos. Maybe don’t be like me and my friend who just looked for the cheapest option without even seeing if there was something better.

Should You Stay in a Hostel or Hotel in Panama City?

For a backpacking trip, I’d choose a hostel. They’re generally the obvious choice when you’re trying to keep accommodation costs down, but I also prefer them when I’m traveling solo because of the social side.

If you want more privacy, then a hotel might make more sense. You can also look for hostels with private rooms if you want your own space without completely giving up the hostel vibes. Whenever I’m getting tired of sharing dorms and I need some privacy, I usually book myself a private room in a hostel so I can have the best of both worlds: privacy and a good night sleep as well as the social side of still being in a hostel.

What Hostel Should You Choose in Panama City?

For me, choosing between these five would be pretty simple.

If I were traveling solo and wanted to meet people, I’d choose Viajero. My experience with the chain in Medellín was exactly what I want from a social hostel.

If keeping costs as low as possible was the priority, I’d choose Hostal Villa Grande.

And Casa Areka is the hostel I actually stayed at in Panama City, so that’s the one on this list I know directly from my own trip.

Beyond that, think about what matters most to you. A solo traveler looking to meet people is going to prioritize completely different things from someone who just wants a cheap bed for the night.

Best Hostels in Panama City: Final Thoughts

If I were booking a hostel in Panama City today, Viajero Casco Viejo would be my first choice.

Casa Areka is where I stayed and worked well for my trip, while Villa Grande is the one I’d look at if I was trying to keep accommodation costs as low as possible.

Those would be my three starting points, with Bodhi and El Machico giving you two more options depending on what works best for your trip.